Kommuninvest issues 2-year USD benchmark bond

Kommuninvest, the Swedish local government debt office, has issued USD 1.25 billion in a 2-year Reg-S/144a note for its USD benchmark programme.

The new bond matures on 29 May, 2021 and was issued with a yield of 2.35 percent, 6 basis points above mid-swaps and 12 basis points over corresponding US Treasuries. This is the tightest spread to US Treasuries for any Kommuninvest US dollar benchmark ever.

Christian Ragnartz, Head of Debt Management at Kommuninvest, commented:

– We are pleased with the good reception for this USD transaction, and particularly the spread level versus US Treasuries. It is an acknowledgement for Kommuninvest as an issuer and will support cost-effective financing for Kommuninvest’s members.

After the transaction, Kommuninvest has twelve outstanding benchmark bonds in USD, maturing annually from 2019 to 2022. The total outstanding volume in the USD benchmark programme amounts to USD 15 billion.

Kommuninvest’s current forecast for long-term borrowing for 2019 is SEK 100-120 billion, with expectations of an outcome in the higher part of the interval. With the recent USD transaction, a total of SEK 61 billion (USD 6.3 billion) has been funded to date. For further information about the transaction please see Press Points.

USD benchmark programme

 

 

 

For further information

Christian Ragnartz
Head of Debt Management
Tel: +46 706 07 38 34
E-mail: christian.ragnartz@kommuninvest.se

Marcus Waineby
Senior Funding Manager
Tel: +46 706 96 77 69
E-mail: marcus.waineby@kommuninvest.se

Björn Bergstrand
Head of Media Relations
Tel: +46 (0)10 470 87 31 alt. +46 70 886 94 76
E-mail: bjorn.bergstrand@kommuninvest.se